Is leasing the right decision for your business? Or is an Equipment Finance Agreement (EFA) your best bet? A lease is a financing agreement that can be structured to meet specific needs. To decide if leasing is the best option, you need to first ask yourself:
How important is conserving our cash or bank credit lines?
What will our equipment or technology needs be in the future?
What is the most efficient way to pay for equipment or technology?
Do I want to pledge other assets or my home as collateral to the bank?
For most businesses "Cash is King", meaning cash is the most important resource for its future. Other businesses are constantly changing their equipment and technology due to obsolescence, so a lease with continuous upgrades is a smart option. Leases are not loans, they are a type of rental agreement so only the equipment is collateral. Many bank loans require large down payments and additional collateral, including your home.
